Ethereum outperforms Bitcoin despite ETF debut

Ethereum’s native cryptocurrency Ether has been outshining Bitcoin’s price despite the latter’s historic launch of several spot Bitcoin exchange-traded funds (ETFs) in the U.S. 

Ether rose 6.4% to US$2,602 in the past 24 hours, while Bitcoin has been trading sideways at US$46,134, according to CoinGecko data.  

However, the non-fungible tokens market tells a different story, with Bitcoin-based assets outselling Ethereum-based NFTs. Bitcoin recorded over US$18.5 million in NFT sales in the past 24 hours, while US$15.8 million worth of Ethereum NFTs changed hands, according to CryptoSlam. 

The Securities and Exchange Commission (SEC), which yesterday approved 11 spot Bitcoin ETFs, is expected to make its first decision on spot Ethereum ETF applications by May 23, 2024. Despite the optimism, SEC Chair Gary Gensler’s previous statements suggest a cautious approach to approving crypto asset securities, particularly for assets other than Bitcoin.

The price increase reflects a broader market sentiment that an Ethereum ETF could soon follow the path of Bitcoin ETFs, with firms like BlackRock and Ark having filed applications. 

The possibility of an Ethereum ETF has sparked discussions about the classification of cryptocurrencies as securities or commodities, a debate that could impact the SEC’s decision-making process.